Emergency living and operational funds will be provided to households and small businesses affected by recent heavy rainfall. Existing loans can be extended for up to one year, and credit card payments and insurance premiums can be deferred for up to six months.
On August 20, the Financial Services Commission announced the implementation of these financial support measures in collaboration with the Financial Supervisory Service, relevant financial institutions, and industry associations. This decision follows the expansion of flood damage in southern regions, including Geoje, since August 15.
Households affected by the floods will receive emergency living stabilization funds from banks and mutual financial institutions. Shinhan, Woori, Kookmin, iM, Busan, and Gyeongnam banks will provide up to 20 million won, while Hana Bank will offer up to 50 million won, and NongHyup Bank will support up to 100 million won based on the extent of the damage. Existing loans can be extended or deferred for three months to one year by banks, savings banks, mutual financial institutions, insurance companies, and credit card companies.
Credit card companies will allow payment deferrals for up to six months, and some will offer waivers on late fees, collection delays, and installment payments. Insurance companies will defer premium payments for up to six months and will provide early payments of up to 50% of estimated insurance benefits upon submission of disaster damage verification documents before the completion of damage assessments.
Small and medium-sized enterprises (SMEs) and small business owners will receive emergency operating funds from policy financing institutions and banks. Industrial Bank will provide up to 300 million won per company, while major banks will support affected merchants with up to 500 million won. The Korea Credit Guarantee Fund will also offer special guarantees of up to 500 million won. Existing loans can be extended or deferred for up to one year.
Victims in special disaster areas can receive interest-free repayment deferrals for up to one year through the Credit Recovery Committee's special debt adjustment program. To apply for financial support, a disaster damage verification document issued by local governments is generally required.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.